General Motors is increasing its financial targets for 2024 after exceeding Wall Street’s expectations in the second quarter. The Detroit-based automaker revised its projected adjusted earnings for the year to range between $13 billion and $15 billion, up from its previous forecast of $12.5 billion to $14.5 billion. Additionally, GM raised its forecasts for operating cash flow and earnings per share, although it slightly reduced its expectations for net income attributable to shareholders to between $10 billion and $11.4 billion.
In the second quarter, GM reported revenue of $47.9 billion, marking over a 7% rise compared to the previous year and surpassing the $45 billion anticipated by analysts. Earnings per share reached $3.06, exceeding the $2.71 predicted and representing a 60% increase from the previous year. Net income rose by 14% to $2.9 billion, up from $2.5 billion.
Following the earnings report, GM’s stock surged nearly 5% in pre-market trading, continuing a significant increase of more than 37% for the year. After the market closed on Monday, the company announced a cash dividend for the third quarter, further boosting investor confidence.
In a letter to shareholders, CEO Mary Barra highlighted the strong performance of GM’s gas-powered trucks and SUVs, stating that the company is set to launch eight new or redesigned vehicle models in North America. She also emphasized GM’s commitment to increasing production of the electric Chevrolet Equinox while aiming for disciplined volume growth in its electric vehicle segment.
Earlier this month, Barra indicated that GM would not meet its target of producing 1 million electric vehicles in North America by the end of 2025 due to a slowdown in the market. The company plans to remain adaptable by “building to demand,” although its EV sales experienced growth last quarter.
Additionally, Barra revealed that GM’s self-driving subsidiary, Cruise, will discontinue its Origin vehicle due to previous operational setbacks and will focus instead on the next-generation Chevrolet Bolt for testing in Texas and Arizona. GM incurred a $600 million charge related to the suspension of Origin production.
During a recent analyst call, Barra remarked that utilizing the Bolt would address regulatory concerns associated with the Origin’s unconventional design, including its absence of a steering wheel. This pivot is also expected to reduce per unit costs and enhance resource efficiency.
Lastly, GM is working on restructuring its joint venture with SAIC Motor in China, as it faces ongoing losses, reporting a $104 million loss for the second quarter. In June, SAIC-GM significantly reduced production by 70%, delivering 26,000 vehicles—down 50% from the previous year, according to Automotive News.